Equality in State Agencies/Prohibition on Diversity, Equity, and Inclusion (DEI).

Added a new requirement for employees or former employees to submit a written grievance to their State agency and wait for a response before they can file a civil lawsuit for damages.

Expanded the right to sue to include former employees and individuals denied employment due to a violation, whereas the previous version only allowed current employees to sue.

Shortened the title of Part I from 'NO DEI IN STATE OR LOCAL GOVERNMENT' to 'NO DEI IN STATE'.

The mandate requiring G.S. 126-14.7 to apply to nonexempt employees was changed to explicitly exclude employees of The University of North Carolina and the Community Colleges System Office.

The prohibition on using public funds for DEI initiatives was narrowed to apply only to State agencies and units of local government, removing the previous restriction on 'covered schools'.

A new line indicating 'Senate Judiciary Committee Substitute Adopted 6/19/25' was added to the header.

Added a new provision explicitly prohibiting the use of public funds for DEI initiatives and banning the acceptance of federal grants that require DEI compliance.

Introduced a specific civil penalty of up to $5,000 for each violation and mandated that the Attorney General be notified of audit results.

Replaced the detailed definition of 'DEI training' with a broader definition of 'DEI' to cover all related programs, policies, and initiatives.

Explicitly included 'covered schools' in the prohibition against using public funds for DEI.

Added a new provision stating that the bill does not alter the relationship between the State and American Indian tribes, ensuring they retain rights and privileges as recognized by federal law.

Removed the list of primary sponsors and referred committees from the bill header, likely to prepare the text for final passage after committee approval.

Renumbered existing subsections regarding compliance audits, employee removal, and civil actions (changing them from (c) to (d) and adding new subsections (d1) and (d1)), shifting the original (c) clause to (d).

The bill header was updated to reflect the official 2025 session, and the document identifier was changed from a draft code to a version number.

The list of primary sponsors was updated to include Representatives Lowery and Eddins in addition to the original sponsors.

The reference to the House Rules Committee was updated to include a specific date (February 24, 2025) and the referral path was slightly rephrased for clarity.